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MTD Income Tax Checker — 2026

Find out when Making Tax Digital for Income Tax becomes mandatory for your income level.

Enter your gross income from self-employment and/or UK property for the current tax year. Do not include PAYE employment income.

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Making Tax Digital for Income Tax — complete guide (2026)

Making Tax Digital (MTD) for Income Tax is HMRC’s most significant change to the UK tax system in a generation. From April 2026, sole traders and landlords with qualifying gross income above £50,000 must keep digital records and send quarterly updates to HMRC using approved software. This guide explains who is affected, when the mandate kicks in, and what you need to do to prepare.

Who qualifies — and what income counts

MTD for Income Tax applies to individuals who file a Self Assessment return and have qualifying income above the threshold. Qualifying income means gross trading income from self-employment plus gross rental income from UK property — before any expenses or allowances. PAYE employment income, dividends, and savings interest do not count towards the MTD threshold, even if they appear on your Self Assessment return.

The three-phase mandation timetable

HMRC is rolling out MTD for Income Tax in three phases. April 2026 brings in those with qualifying income above £50,000. April 2027 extends the mandate to those above £30,000. The April 2028 threshold of £20,000 is provisional and subject to final legislation — check gov.uk for the latest status.

What quarterly submissions involve

Each quarter, you must submit a summary of your business income and expenses to HMRC using MTD-compatible software. This is not a full tax calculation — it’s a summary, typically taking 10–30 minutes if your records are kept digitally. The software calculates an indicative tax position. At the end of the year, you submit an end-of-period statement (finalising each income source) and a final declaration (replacing the SA return), by 31 January.

This content is reviewed by Sarah Okafor (ICAEW ACA).

Frequently Asked Questions

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) requires sole traders and landlords to keep digital records of their income and expenses and submit quarterly updates to HMRC using MTD-compatible software. It replaces the annual Self Assessment return with four quarterly updates, an end-of-period statement, and a final declaration. HMRC's aim is to make the tax system more accurate and real-time.

Who does MTD for Income Tax apply to?

MTD for Income Tax applies to sole traders (self-employed individuals) and landlords with qualifying income above the relevant threshold. Qualifying income is the combined gross income from self-employment and UK property. PAYE employment income does not count towards the threshold. Partnerships and companies are separate — MTD for Corporations Tax is a later phase.

What are the MTD income thresholds?

From April 2026: qualifying income over £50,000. From April 2027: over £30,000. From April 2028: over £20,000 (provisional). 'Over' means strictly above the threshold — exactly £50,000 does not trigger the April 2026 mandate. Check the gov.uk MTD page for any updates to the 2028/29 threshold, as it is subject to final confirmation.

What software do I need for MTD?

You need HMRC-recognised MTD-compatible software. There are two approaches: bridging software (works with existing spreadsheets) and native MTD software (purpose-built apps). HMRC maintains a list of recognised software on gov.uk. Free options exist for simple cases. You cannot submit MTD updates directly through HMRC's own portal — third-party software is required.

What are the quarterly submission deadlines?

MTD submissions follow the tax year quarter pattern: Q1 (6 April–5 July) due 5 August; Q2 (6 July–5 October) due 5 November; Q3 (6 October–5 January) due 5 February; Q4 (6 January–5 April) due 5 May. After the four quarterly updates, you submit an end-of-period statement and final declaration by 31 January following the tax year.

What happens if I miss an MTD deadline?

HMRC applies a points-based penalty system for late MTD submissions. Each missed deadline earns a penalty point, and when you reach the threshold (4 points for quarterly filers) a £200 penalty is charged. Points expire after 24 months if you have no further late submissions. Deliberately avoiding MTD when mandated could result in further penalties.

Do I still need to do Self Assessment under MTD?

Under MTD for Income Tax, the annual Self Assessment return is replaced by the four quarterly updates plus an end-of-period statement and final declaration. The final declaration is similar to a Self Assessment return but is submitted digitally through your MTD software. The January 31st payment deadline remains the same.